Correlation Between Pentamaster Bhd and Sunway Construction
Can any of the company-specific risk be diversified away by investing in both Pentamaster Bhd and Sunway Construction at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Pentamaster Bhd and Sunway Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pentamaster Bhd and Sunway Construction Group, you can compare the effects of market volatilities on Pentamaster Bhd and Sunway Construction and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Pentamaster Bhd with a short position of Sunway Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pentamaster Bhd and Sunway Construction.
Diversification Opportunities for Pentamaster Bhd and Sunway Construction
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pentamaster and Sunway is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Pentamaster Bhd and Sunway Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunway Construction and Pentamaster Bhd is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Pentamaster Bhd are associated (or correlated) with Sunway Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunway Construction has no effect on the direction of Pentamaster Bhd i.e., Pentamaster Bhd and Sunway Construction go up and down completely randomly.
Pair Corralation between Pentamaster Bhd and Sunway Construction
Assuming the 90 days trading horizon Pentamaster Bhd is expected to generate 1.41 times more return on investment than Sunway Construction. However, Pentamaster Bhd is 1.41 times more volatile than Sunway Construction Group. It trades about 0.1 of its potential returns per unit of risk. Sunway Construction Group is currently generating about 0.04 per unit of risk. If you would invest 343.00 in Pentamaster Bhd on September 25, 2024 and sell it today you would earn a total of 61.00 from holding Pentamaster Bhd or generate 17.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Pentamaster Bhd vs. Sunway Construction Group
Performance |
Timeline |
Pentamaster Bhd |
Sunway Construction |
Pentamaster Bhd and Sunway Construction Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pentamaster Bhd and Sunway Construction
The main advantage of trading using opposite Pentamaster Bhd and Sunway Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pentamaster Bhd position performs unexpectedly, Sunway Construction can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sunway Construction will offset losses from the drop in Sunway Construction's long position.Pentamaster Bhd vs. Malayan Banking Bhd | Pentamaster Bhd vs. Public Bank Bhd | Pentamaster Bhd vs. Petronas Chemicals Group | Pentamaster Bhd vs. Tenaga Nasional Bhd |
Sunway Construction vs. ES Ceramics Technology | Sunway Construction vs. MI Technovation Bhd | Sunway Construction vs. Diversified Gateway Solutions | Sunway Construction vs. MClean Technologies Bhd |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |